Goldsmiths suffer from steep decline in demand for gold

By Admin 06 Jul 2023

DMG Newsroom
6 July 2023, Sittwe

Goldsmiths in Arakan State are struggling as demand for gold jewellery has significantly declined due to gold price hikes since the coup.

“We can hardly make a living as a goldsmith due to gold price increases, inflation and economic downturn since the military takeover. We could make a decent living before the takeover,” said goldsmith U Kyaw Zaw Aye from Sittwe.

Before the coup, the price of gold was just 1.3 million kyats per tical, but these days it has hit as much as 3.2 million kyats. 

“If the situation goes on like this, things would be extremely difficult for us,” said goldsmith U Bo Hsan Naing from Kyaukseik Village in Ponnagyun Township. “All the goldsmiths will quit for the sake of their families.”

Some goldsmiths have already changed professions. At the same time, shops that supply equipment for goldsmiths are also having a hard time.

U Saw Shwe Thit from Sittwe, who supplies related equipment for goldsmiths, said: “The demand for goldsmith equipment has declined as a result of the gold price increase. The demand for gold has dropped due to political upheaval and the storm. Things are worse for goldsmiths.”

More people are pawning their gold items in the aftermath of Cyclone Mocha, which hit Arakan State in mid-May, as they need money to rebuild their houses damaged or destroyed by the storm.

Massive inflation since the February 2021 coup is also taking a heavy toll, especially for low-income families.